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Organization news and financial news, analysis, opinion and statistics covering the six Gulf Corporation Council members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE
Economic growth across the Gulf Cooperation Council (GCC) is set to speed up in 2026, with the region projected to outshine its 2025 performance in spite of soft oil revenues and continuous global uncertainties. According to a brand-new Oxford Economics research rundown, GCC GDP growth is anticipated to increase to 4.4 percent in 2026, up from 4 percent in 2025, showing a resilient nonenergy sector, strong customer characteristics, and gradually enhancing oil output.
The most current forecasts recommend that Gulf economies are now wellpositioned to gain back momentum, buoyed by strengthening domestic need and a broadly stable worldwide backdrop. The report highlights GCC customers as a significant chauffeur of the area's financial performance heading into next year. Low inflation, robust labour markets, and growing real non reusable earnings are expected to sustain a rise in consumer spending across the Gulf.
Credit growth is also forecast to stay raised as access to monetary services widens. With GCC reserve banks anticipated to follow expected United States Federal Reserve rate cuts due to the area's dollar pegs, borrowing costs are likely to decline, providing households and services even more inspiration to invest and invest. While the nonoil sector continues to anchor the region's resilience, the GCC's hydrocarbon outlook presents a combined picture.
This might weigh on firsthalf development, particularly for economies more dependent on oil extraction. However, Oxford Economics forecasts a rebound later in 2026, with Opec+ members expected to resume raising production as stocks tighten and worldwide demand enhances. Qatar, meanwhile, stands apart as a regional outperformer, with considerable expansions in gas production and exports expected to raise its general financial efficiency.
Saudi Arabia's 2026 spending plan prepares for a 6 per cent cut in capital expense as the kingdom aims to narrow its financial deficit by 2 portion points. Nevertheless, the report keeps in mind that these cuts might not materialise fully if countercyclical spending measures are triggered to support development. By contrast, more varied economies such as the UAE and Qatar are expected to continue advancing their advancement agendas.
Despite shortterm dangers connected to oil prices and global demand, the GCC's 2026 financial outlook is specified by strength in principles: resistant consumers, robust nonenergy sectors, enhancing oil characteristics, and strategic fiscal planning. With these aspects lining up, the region is preparing for one of its most balanced periods of expansion in recent years anchored by a clear upward trajectory in GDP growth.
RIYADH: Gulf Cooperation Council regional economies are anticipated to remain resistant in 2026, driven by strong domestic demand and a broadly stable global economy, according to an analysis. In its most current report, Oxford Economics highlighted that the genuine gdp of the GCC area is anticipated to broaden by 4.4 percent in 2026, up from the projected 4 percent this year.
US trade policy under President Donald Trump has had no noteworthy influence on local development, and non-energy sectors have actually sustained their robust momentum," stated Oxford Economics. It added: "On the other hand, oil production has gradually increased, providing an increase to the area's economies. We anticipate GCC development will rise to 4.4 percent in 2026, from 4 percent this year."In November, the GCC Statistical Center stated that economic development in the region is set to accelerate to 4.3 percent by 2027, driven by broadening non-oil sectors.
Non-oil activities accounted for 73.2 percent of total GDP, up from 70.6 percent at the end of 2024, highlighting the region's ongoing development toward diversity. According to Oxford Economics, GCC consumers will be standout performers in 2026 and are expected to outperform their international peers.
In December, the IMF further said that headline inflation is anticipated to stay listed below 2 percent in Bahrain, Oman, and Qatar, near 2 percent in the Kingdom and the UAE, and a little above 2 percent in Kuwait in 20252026. According to Oxford Economics, credit development is anticipated to remain elevated in the GCC area throughout 2026, as access to financial services is anticipated to grow and lending is predicted to be supported by further cuts in interest rates."Owing to their currency pegs to the US dollar, GCC main banks are expected to follow the US Federal Reserve by easing financial policy even more, which in turn will reduce debt maintenance costs and enhance non reusable earnings and need," said the report.
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